Strong rand could negate bigger dividend for Richemont shareholders
Inventory buybacks continued to drag earnings down in the year to end-March
The rand strengthening against the Swiss franc is bad news for Richemont shareholders, who are likely to see a drop in their dividend in local currency. Richemont declared a Sf0.19 dividend in its results for the year to end-March, released on Friday morning. That was up 7% from Sf0.18 in the prior year. However, at Friday morning’s exchange rate of R12.58 to the Swiss franc, the dividend equates to about R2.39, down from the prior year’s R2.43. The exchange rate Richemont will use to pay its South African shareholders will be announced on September 11. The group’s overall sales grew 3% to €10.98bn, and its net profit by 1% to €1.2bn. The group’s watch division suffered a 6% decline in sales to €2.7bn. "Excluding inventory buybacks in both years, sales would have been broadly in line," Richemont chairman Johann Rupert said in the results statement. "Richemont’s voluntary tender offer for the world’s leading online luxury retailer, Yoox Net-a-Porter, aims to accelerate our ability to...
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